FG to honour N36 billion MMA2 concession agreement

• Firm may begin regional flight from terminal

A decade long protracted face-off between Bi-Courtney Aviation Services Limited and the Federal Government over the concession agreement of the N36 billion Murtala Muhammed Airport 2 (MMA2) terminal may soon be over.

The Federal Government through the Minister of Information, Culture and Tourism, Alhaji Lai Mohammed disclosed that the Federal Government would honour the agreement of 36 years and not 12 years as being peddled by the Federal Airports Authority of Nigeria (FAAN) for the concession government signed with Bi-Courtney to build the ultra-modern terminal under the Build Operate and Transfer (BOT) arrangement.

With the implementation, the aviation firm can now do regional flight operations from the terminal. Four years ago, the government prevented the aviation firm from operating from there after reportedly spending over N1b to provide facilities.

Speaking at the quarterly Aviation Safety Round Table Initiative (ASRTI) held in Lagos today, with theme, “Aviation as a catalyst for economic growth”, Mohammed stated that flouting of agreements by government would send a very wrong signal to the international community that the country does not respect business pact.

His words, “Agreements must be obeyed. We cannot continue as a government to look at colour, religion and ethnicity in making decisions. When you draw an agreement, it is not the fault of the other party if you don’t come with competent people to draw up an agreement. You can’t blame the other party. Agreements must be obeyed. We will obey the agreement as a government with the case of MMA2.”

He stated that the multi-billion airport terminal was the best in Nigeria that should be replicated, adding that if MMA2 was a mistake, “We need to make more of such mistakes. We know what the problems are and we need solution to the problem.”

Chairman of Bi-Courtney Aviation Services (BASL), Dr. Wale Babalakin said aviation can be a catalyst for economic growth, but expressed concern that the skill to do it is simply not there because of the destruction of the education system by past administration which he said has destroyed every facets of economy.

Babalakin noted that the face-off between his firm and FAAN prompted for President, Umar Musa Yar’Adua who invited the BASL and FAAN officials who signed the pact.

“The late President ordered FAAN to implement the agreement after listening to the argument of both parties.”

Explaining his long drawn battle with the Federal Airports Authority of Nigeria (FAAN) over concession of the terminal, Babalakin said the controversy over the concession sprang up as a result of the alleged breach of contract by the government.

He noted that the MMA2 concession agreement stipulated that all domestic flights from Lagos, as well as revenues accruing from such flights, were to be operated by BASL.

According to him, the company was shocked when Arik Air began to operate from the General Aviation Terminal (GAT).

“Our lawyers had anticipated that it was possible that somebody would try to break the law. Even if you break that law, the agreement will now say all revenues must come to us and we should be given the first option to make any such development. When this happened, we complained. We now went to the arbitration panel set up by the Attorney General of the Federation. It has three members from Bi-Courtney and three from the Federal Government.’’

He alleged that the agreement unanimously reached by the panel was never implemented, leaving the company with no option than to go to court, which ruled in BASL’s favour in 2009.

“We went back to court to seek for damages. After considering every submission, the court awarded us N132 billion damages in 2012, which remains unpaid till date,’’ he said.

He added that six appeals were filed by the Federal Government, Arik Air, (National Association of Air Transport Employees (NUATE); Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), and two others, which were all dismissed

“Arik went to the Supreme Court, but the case was dismissed in five minutes. Since 2012, the same authorities have been accumulating this money, which is now N200bn,’’ Babalakin added.

He further stated that there was an agreement that Bi-Courtney Services would reconstruct the terminal for N2.7 billion, saying that “government had wanted to construct a shed and not a terminal building.”

Chairman, Air Peace Airlines, Allen Onyema carpeted the aviation agencies for lack of infrastructure at the most of the aerodromes, saying it is causing a huge dislocation in passenger facilitation and delay for passengers.

The airline chief who lauded the Federal Government for the order on ease of doing business at the airports which has made investors to come to Nigeria with ease with 24 hours visa on arrival procedure, urged government to look at the arbitrary hike in charges and multiple charges that he said are reducing the lifespan of airlines.

Wole Shadare